Seeks to clarify issues in respect of apportionment of input tax credit (ITC) in cases of business reorganization under section 18 (3) of CGST Act read with rule 41(1) of CGST Rules

Last updated: 24 March 2020

Save Share

Quick Summary

This circular clarifies how Input Tax Credit (ITC) should be apportioned and transferred when a business undergoes reorganisation, such as a merger, demerger, or change in ownership. It addresses taxpayer queries regarding Section 18(3) of the CGST Act and Rule 41(1) of the CGST Rules. The aim is to provide clear guidance on these complex scenarios.

Circular No.133 03/2020-GST F.No. CBEC-20/06/13/2019-GST Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes Customs GST Policy Wing *** New Delhi, dated the 23rd March, 2020 To, The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/ Commissioners of Central Tax (All) / The Principal Director Generals/ Director Generals (All) Madam/Sir, Sub: Clarification in respect of apportionment o

Daily Limit Reached

You have reached your daily limit of 2 Free Notice & Circular

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Community
Daily E-Newsletter
Unlimited Notice & Circular Access
Profile Visitors
Link Social Profiles
Featured Job Posts
Pro Badge
Expert GST Guidance
Unlimited Forum Replies
Download Content in PDF

1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

View all CCI PRO benefits

Already a PRO member? Login here for an ad-free experience. 07941056694

FAQ :

The circular aims to clarify issues concerning the apportionment and transfer of Input Tax Credit (ITC) when a business undergoes reorganisation like merger, demerger, or change in ownership.

The clarification is in respect of Section 18(3) of the CGST Act, read with Rule 41(1) of the CGST Rules.

The circular covers reorganisations such as merger, demerger, amalgamation, and any change in the constitution or ownership of a business.

Representations have been received from various taxpayers seeking clarification on the apportionment and transfer of ITC in cases of business reorganisation.

This circular was issued on the 23rd March, 2020.

Circular No : 133/03/2020
Source : http://www.cbic.gov.in/htdocs-cbec/gst/circular-cgst-133.pdf

109 Views Comment Share GST Report

Notification posted by

CCI News Desk

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

Comments